Corporate Presentation March 2020
Group’s History at a glance
IKEA & . Acquisition of THE ATHLETE”S FOOT franchise rights INTERSPORT . First INTERSPORT store General Dealership of franchise rights in Romania Dispose of Samsung . Completion of wholesale activity GENERAL ELECTRIC Representation for exit Approval/ License . Dispose of Kotsovolos to household appliances Greece & Romania Implementation of Dixons Group REIC formation First IKEA store in Cyprus
1970 - 1950 1988 1993 1999 2001 2004 2006 2007 2010 2011 2014 2016 2019 1980
First Ikea store in . First IKEA store in Bulgaria. Greece (Thessaloniki) . Acquisition of INTERSPORT and opening of 14 Acquisition of 51% of P. First branch network and franchise INTERSPORT stores KOTSOVOLOS S.A. INTERSPORT rights in Turkey store in Bulgaria Founding of A. IPO in the Issuance of first Greek FOURLIS & Athens Stock Corporate Bond, traded in Co Exchange Athens Stock Exchange
1 Company Profile
Our Presence 2019 Revenue Split
FOURLIS GROUP is a leading retail group of companies of quality consumer goods in Southeast Europe. 39,5% The company was founded in 1950. 60,5% The Group is active in retail sector:
Greece Abroad Retail Home Furnishings through the franchise of IKEA stores in Greece, Cyprus and Bulgaria,
Retail Sporting Goods through the franchise of INTERSPORT stores in Greece, Cyprus, Romania, Bulgaria and Turkey along with THE ATHLETE’S FOOT stores in Greece and Turkey.
The Group is entering into Real Estate Investment sector, through the formation of a Real Estate Investment Company (TRADE ESTATES REIC)
Our Business Activities
Retail Home Furnishings Retail Sporting Goods Real Estate Investment
2 Retail Sales in Greece
Retail Sales (Turnover Index)
4,7% Furniture, Electrical Equipment, Household Equipment 2,6% 2,6%
0,4% Clothing and Footwear 0,3% 2,1%
-12,5% Department stores -1,5% -1,4%
7,2% Books, Stationary, Other Goods 0,7% 5,7%
1,2% Overall Index (excl. Fuel) 1,7% 0,9% 2019 vs PY 2018 vs PY -15,0% -10,0% -5,0% 0,0% 5,0% 10,0%
2017 vs PY % y-o-y change
Source: Hellenic Statistical Authority
3 Executive Summary FY 2019
FOURLIS Group, during FY19 realized sales € 466,3 million 4,0% higher vs same period last year (€ 448,5 mio).
Retail Home Furnishings sales in Greece for FY19 increased by 0,2 % y-o-y, while in the other countries sales increased by 5,0 % y-o-y.
Retail Sporting Goods sales in Greece for FY19 increased by 7,1 % y-o-y, while in the other countries sales increased by 9,3 % y-o-y average.
FY2019 EBITDA was € 66,6 million following implementation IFRS 16. The comparable EBITDA was € 46,3 million vs € 44,3 million in FY18.
Consolidated Profit Before Taxes was € 19,5 million, while on a comparable basis Profit before taxes was € 22,5 million vs Profit of € 18,5 million in FY18.
The Group realized Net Profit of € 11,9 million.
Net Debt € 106,2 million vs € 95 million in FY 2018.
CAPEX € 15,1 mio.
4 Consolidated Key Financial Figures
Q4 FY CY 19 PY 18 Index CY 19 PY 18 Index 127,0 122,7 103 Revenue 466,3 448,5 104
56,0 53,3 105 Gross Profit 202,4 192,8 105 44,1% 43,4% Margin 43,4% 43,0%
22,2 15,8 141 EBITDA 66,6 44,3 150 17,5% 12,9% Margin 14,3% 9,9%
17,1 15,8 108 comparable EBITDA 46,3 44,3 105 Figures (in €mm) (in Figures
15,5 11,9 130 EBIT 35,8 30,2 119 Group Consolidated Key Financial Key Consolidated Group
11,7 8,9 131 PBT 19,5 18,5 106 12,3 8,9 138 comparable PBT 22,5 18,5 122
5,9 6,7 88 NP 11,9 14,3 84
5 Consolidated Balance Sheet
(in € million) FY 2019 FY 2018 Property, plant & equipment 57,4 209,6 Right of Use Assets 113,9 0,0 Other Non Current Assets 47,3 69,8 Non-current assets 218,6 279,4 Inventories 88,7 83,9 Receivables 18,5 21,0 Cash & Cash Equivalent 41,0 39,9 Assets Held for Sale 176,1 0,0 Current assets 324,2 144,7 Total Assets 542,8 424,1 Loans and Borrowings 104,6 113,8 Long Term Lease Liabilities 101,8 0,0 Other non-current liabilities 6,2 9,6 Non-current liabilities 212,6 123,4 Loans and Borrowings 25,0 21,1 Short Term Lease Liability 15,0 0,0 Account Payables 88,0 105,9 Liability of Assets Held for Sale 21,9 0,0 Current liabilities 150,0 127,0 Shareholders Equity 180,2 173,7 Shareholders Equity & Liabilities 542,8 424,1
6 Consolidated Key Financial Figures
Revenue Breakdown by Activity (in € mm) Revenue Breakdown by Geography (in € mm)
100% Total 413,3 414,4 428,1 434,1 448,5 466,3 80% 32,9% 34,8% 36,2% 38,4% 38,5% 39,5% 0,4 0,1 0,1 0,1 23,3 5,8 60% 122,3 129,2 136,5 142,7 151,8 164,1 40% 67,1% 65,2% 63,8% 61,6% 61,5% 60,5% 20%
267,6 279,5 291,2 291,2 296,6 302,2 0% FY14 FY15 FY16 FY17 FY18 FY 2019 Greece Abroad FY14 FY15 FY16 FY17 FY18 FY19 Retail Home Furnishings Retail Sporting Goods Other (incl. disc. Operations) EBITDA (in € mm)
9,6% 9,9% 9,9% 50 9,0% 10% 7,9% 40 8% 6,3% 30 6% 44,3 46,3 20 38,4 41,8 4% 32,6 25,9 10 2%
0 0% FY14 FY15 FY16 FY17 FY18 FY19* EBITDA EBITDA Margin *Comparable (IFRS16 adjusted)
7 Net Debt Structure by Segment & Evolution
200 Net Debt Evolution
150 160 163 151 145 145 147 106 135 142 134 138 125 58 133 126 100 120 122 117 116 115 114 108 107 95 50
0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016 2017 2018 2019
Net Debt Structure by Segment - € mm
31.12.2018 31.12.2019 Δ vs PY end 67,8 78,5 10,6
28,7 28,4 -0,2
-1,5 -0,7 0,8
Total Group 95,0 106,2 11,2
8 FY 2019 – Cash Flow Performance
Group Cash Flow (in € mm)
40 29,3 19,5 Working 20 Net Debt Net Debt Capital CAPEX Financial Income Spending Dividend CY 2019 PY 2018 Changes Expenses Tax - PBT Non (2,8) (4,5) Cash (12,0) (20) Charges (15,6) (25,2) (40)
(60)
(80)
(100) (95,0) (106,2) (120)
9 HOUSEMARKET
BULGARIA
Number of Stores Greece Cyprus GREECE Stores 5 Stores 1 Pick Up Points 6 Pick Up Points 1
Bulgaria Stores 1 Pick Up Points 3
CYPRUS IKEA Visitors in 000s
10.918 11.457 Store 4,9 % Pick Up Point
FY 2018 FY 2019 E-Commerce in all three countries 10 HOUSEMARKET – Financial Performance
Q4 FY CY 19 PY 18 Index CY 19 PY 18 Index 84,2 83,6 101 Revenue 302,3 296,7 102
34,7 33,9 102 Gross Profit 125,7 121,3 104 41,2% 40,5% Margin 41,6% 40,9%
13,8 11,9 116 EBITDA 39,7 32,1 124 16,4% 14,2% Margin 13,1% 10,8% 12 11,9 101 comparable EBITDA 32,8 32,1 102
11,4 9,0 127 EBIT 26,3 23,0 115 IKEA Key Financial Figures (in €mm) (in Figures Financial Key IKEA 9,5 7,0 136 PBT 17,6 15,8 112 9,8 7,0 141 comparable PBT 19,0 15,8 120
11 INTERSPORT
Intersport Customers in 000’s
4.184 4.435 +6,0 %
FY 2018 FY 2019 Number of Stores
Greece Romania Intersport stores 31 Intersport stores 50 The Athlete’s Foot stores 13 Cyprus Intersport stores 6 Turkey Intersport stores 23 Bulgaria The Athlete’s Foot stores 3 Intersport stores 9 Intersport Stores by Geography 140 119 120 112 113 117 103 106 100 91 82 80 73
60 44 51 40 20 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 E-Commerce Greece Romania Bulgaria Cyprus Turkey 12 INTERSPORT – Expansion Plan
A Target of 160+ Stores Expansion Plan
250 200
Greece
now 50 stores 55 stores 200 160
Cyprus 150 120 now 6 stores 6 stores .
Bulgaria 100 80 now 9 stores 10 stores
Romania 50 40
now 31 stores 40 stores
- - Turkey*
now 23 stores 55 stores Sales (€m) Stores Sq m
* Expansion plan will be re-evaluated based on macro economic environment 13 THE ATHLETE’S FOOT
. A global retailer for fashionable athletic footwear and apparel.
. 518 stores in 29 countries.
. Carrying some of the world’s most renowned brands.
. Sport with style.
. Fourlis Group has the franchise rights to develop The Athlete’s Foot store network in the five countries (currently Greece & Turkey)
. Today operates 13 stores in Greece and 3 stores in Turkey.
. A target of 40 stores in Greece & Turkey in the next 3 to 5 years
14 SPORTING GOODS- Financial Performance
Q4 FY
CY 19 PY 18 Index CY 19 PY 18 Index 42,8 39,1 110 Revenue 164,1 151,8 108
21,3 19,4 110 Gross Profit 76,8 71,5 107
49,7% 49,6% Margin 46,8% 47,1%
8,8 4,5 198 EBITDA 28,2 13,5 209 20,6% 11,4% Margin 17,2% 8,9% 5,5 4,5 123 comparable EBITDA 15,0 13,5 111
4,5 3,2 144 EBIT 11,2 8,5 132
2,7 2,2 121 PBT 3,7 3,9 94 €mm) (in Figures Financial Key INTERSPORT 3,0 2,2 135 comparable PBT 5,2 3,9 133
15 TRADE ESTATES
Serving Physical . The Group is entering into Real Estate Investment sector, through the formation of a Real & Digital Retail Estate Investment Company (TRADE ESTATES REIC).
. The Hellenic Capital Market Commission during its meeting held at 838/28.02.2019 resolved on granting a license to the company under formation “TRADE ESTATES REAL ESTATES INVESTMENT COMPANY”.
. Fourlis Group subsidiaries will contribute to TRADE ESTATES REIC a gross value of real estate assets €182,7 million.
. Trade Estates REIC will invest purely in quality retail properties and E-Commerce infrastructure.
. Trade Estates REIC, will grow by acquiring new retail assets from the market, which along with the existing Fourlis assets, will represent a high quality retail property portfolio.
. Fourlis Group aims to maximize flexibility in accessing real estate equity, improving overall returns on assets, centralizing ownership and management, streamlining tax planning.
16 TRADE ESTATES – Initial Portfolio
Big Box Retail Big Box Retail Big Box Retail Big Box Retail Thessaloniki, Greece Ioannina, Greece Nicosia, Cyprus Sofia, Bulgaria GLA: 24.000m² GLA: 29.000m² GLA: 20.620m² GLA: 20.320m² Asset Value: € 44,9 mio Asset Value: € 12,7 mio Asset Value: € 32,5 mio Asset Value: € 44,9 mio Annual Rent: € 3,1 mio Annual Rent: € 1,0 mio Annual Rent: € 3,1 mio Annual Rent: € 3,3 mio
Asset Portfolio
7 € 182,7 mio
Properties GAV
167.440 m2 99,80%
Commercial Center Logistics Center Logistics Center GLA Occupancy Rate Rentis Attica, Greece Schimatari, Greece Oinofyta, Greece GLA: 6.600m² GLA: 37.000m² GLA: 29.900m² € 13,25 mio 7,25% Asset Value: € 16,7 mio Asset Value: € 22,6 mio Asset Value: € 8,3 mio Annual Rent: € 0,9 mio Annual Rent: € 1,8 mio Annual Rent: € 0,7 mio (estimated) Rental Income Gross Rental Yield
17 Corporate Social Responsibility
FOURLIS Group CSR Department was established in 2008 and since then it implements actions and programs driven by the Group’s Values “Integrity, Respect, Efficiency” focused on 3 basic axes:
MISSION
PEOPLE SOCIETY ENVIRONMENT
Health-Wellbeing Programs Donations Recycling Programs 72 Kindergarten Scholarships Refurbishments through 2013- IKEA sustainable lifestyle Creation of value for 2019 Customers, People, Psychological support Photovoltaic Systems Offer Sport Equipment to Shareholders and the 28.000 students in 9 year period Society
Volunteer Days continuous contribution to the UN Sustainable Development Goals
Since 2008 FOURLIS Group is an official member (Signatory) of UN GLOBAL COMPACT and is committed to adopt, support and promote its ten principles on Human Rights, Labor Conditions, Environmental Protection and the fight against Corruption.
FOURLIS Group supports the UN Sustainable Development Goals
18 21
Thank you!